Sri Lanka - Fourth Tree Crops Project

Document of The World Bank FOR OFFICIAL USE ONLY C A /,5z;- Ct Report No. 5265-CE STAFF APPRAISAL REPORT SRI LANKA FOURTH TREE CROPS PROJECT February 15, 1985 South Asia Projects Department General Agriculture Division This document has a restricted distribution and mav be used by recipients only in the performance of their official duties- Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$1 = Rupees (Rs) 25.17 Re 1 US$0.04 WEIGHTS AND MEASURES 1 cubic meter = 1.308 cubic yards 1 kilometer = 0.62 miles 1 meter (a) = 1.09 yards 1 kilogram (kg) = 2.2 pounds 1 hectare (ha) = 2.47 acres 1 square meter (m2) = 10.76 square feet 1 ton (metric) = 2,205 pounds ABBREVIATIONS AND ACRONYMS ADB - Asian Development Bank BHP - Brake Horse Power BOC - Bank of Ceylon CRI - Coconut Research Institute CTC - Cut Tear and Curl IDU - Institution Development Unit 38DB - Janatba Estates Development Board LCB - Local Competitive Bidding LRC - Land Reform Commission MOFP - Ministry of Finance and Planning MPI - Ministry of Plantation Industries MTIP - Medium-Term Investment Program NIPM - National Institute of Plantation Management NPV - Net Present Value ,ODA - Overseas Development Administration (UK) OST - Old Seedling Tea RRI - Rubber Research Institute RSS - Ribbed Smoked Sheet SCF - Standard Conversion Factor SPC - Sri Lanka State Plantations Corporation TRAD - Tea Rehabilitation and Diversification Project (IDA Credit 1240-CE) TRI - Tea Research Institute TSHDA - Tea Smallholders Development Authority TSR - Technically Specified Rubber VA - Visiting Agent VP - Vegetatively Propagated FISCAL YEAR January 1 - December 31  FOR OMICIAL USE ONLY SRI LANKA FOURTH TREE CROPS PROJECT Credit and Project Summary Borrower: The Democratic Socialist Republic of Sri Lanka Beneficiaries: Janatha Estates Development Board Sri Lanka State Plantations Corporation Amount: SDR 56.5 million (US$55.0 million equivalent) Terms: Standard Relending Terms: The Government would relend the credit at an interest rate of 11 percent to the Bank of Ceylon (BOC), which would onlend to the corporations at an interest rate of 13 percent per annium. Repayment of subloans by both BOC and the corporations would be over ten years, including a one-year grace period. The Government would bear the fcreign exchange risk, while BOC would assume full risk for funds on-lent to the corporations. Project Description: The project aims at increasing the production of tea, rubber, and coconuts by improving the productivity of all publicly-held estates, rehabilitating tactories, providing field and nursery equipment, and improving transportation. The project would strengthen management and financial control of the corporations, stabilize lands through soil conservation, and improve the health and social welfare of estate workers and their families. The project would also improve institutional capacity by providing training, technical assistance, and facilities for planning and monitoring operations. The project contains no unusual risk. This document hs a rnestricted distiibuion and may be used byr rpients only in the perfomnce of txir off-icil dutieL its ontents may not otherwise be disclosed without World Bank authorizatin.  Estimated Cosc: a/ Local Foreign Total -- --US$ million- -- Field Works 66.7 15.0 81.7 Field and Nursery Equipment 3.1 1.9 5.0 Vehicles 2.5 7.4 9.9 Factory Rehabilitation 13.3 8.5 21.8 Mini-Hydro Units 4.2 4.1 8.3 Housing 9.2 2.9 12.1 Social Welfare 7.8 2.9 10.7 Institution Building 6.6 5.2 11.8 Base Cost 113.4 47.9 161.3 Physical Contingencies 6.3 2.1 8.4 Price Contingencies 32.5 9.6 42.1 Total Cost 152.2 59.6 211.8 Financing Plan: IDA 28.1 26.9 55.0 ADB 21.2 23.8 45.0 ODA 0.0 5.5 5.5 Netherlands Government 6.0 2.0 8.0 Norwegian Government 4.1 1.4 5.5 Bank of Ceylon 10.0 0.0 10.0 Corporations 82.8 0.0 82.8 Total 152.2 59.6 211.8 Estimated Disbursement: FY86 FY87 FY88 FY89 FY90 IDA FY ---US$ million-